The Florida Senate

¹202.19  Authorization to impose local communications services tax.--

(1)  The governing authority of each county and municipality may, by ordinance, levy a discretionary communications services tax.

(2)(a)  Charter counties and municipalities may levy the tax authorized by subsection (1) at a rate of up to 5.1 percent for municipalities and charter counties that have not chosen to levy permit fees, and at a rate of up to 4.98 percent for municipalities and charter counties that have chosen to levy permit fees.

(b)  Noncharter counties may levy the tax authorized by subsection (1) at a rate of up to 1.6 percent.

(c)  The maximum rates authorized by paragraphs (a) and (b) do not include the add-ons of up to 0.12 percent for municipalities and charter counties or of up to 0.24 percent for noncharter counties authorized pursuant to s. 337.401, nor do they supersede conversion or emergency rates authorized by s. 202.20 which are in excess of these maximum rates.

(3)(a)  The tax authorized under this section includes any fee or other consideration to which the municipality or county is otherwise entitled for granting permission to dealers of communications services, including, but not limited to, providers of cable television services, as authorized in 47 U.S.C. s. 542, to use or occupy its roads or rights-of-way for the placement, construction, and maintenance of poles, wires, and other fixtures used in the provision of communications services.

(b)  This subsection does not supersede or impair the right, if any, of a municipality or county to require the payment of consideration or to require the payment of regulatory fees or assessments by persons using or occupying its roads or rights-of-way in a capacity other than that of a dealer of communications services.

²(4)(a)1.  Except as otherwise provided in this section, the tax imposed by any municipality shall be on all communications services subject to tax under s. 202.12 which:

a.  Originate or terminate in this state; and

b.  Are charged to a service address in the municipality.

2.  With respect to private communications services, the tax shall be on the sales price of such services provided within the municipality. In determining the sales price of private communications services subject to tax, the communications service provider shall be entitled to use any method that reasonably allocates the total charges among the state and local taxing jurisdictions in which channel termination points are located. An allocation method is deemed to be reasonable for purposes of this subparagraph if the communications service provider regularly used such method for Florida tax purposes prior to December 31, 2000. If a communications service provider uses a reasonable allocation method, such provider shall be held harmless from any liability for additional tax, interest, or penalty based on a different allocation method.

(b)1.  Except as otherwise provided in this section, the tax imposed by any county under subsection (1) shall be on all communications services subject to tax under s. 202.12 which:

a.  Originate or terminate in this state; and

b.  Are charged to a service address in the unincorporated area of the county.

2.  With respect to private communications services, the tax shall be on the sales price of such services provided within the unincorporated area of the county. In determining the amount of charges for private communications services subject to tax, the communications service provider shall be entitled to use any method that reasonably allocates the total charges among the state and local taxing jurisdictions in which channel termination points are located. An allocation method is deemed to be reasonable for purposes of this subparagraph if the communications service provider regularly used such method for Florida tax purposes prior to December 31, 2000. If a communications service provider uses a reasonable allocation method, such provider shall be held harmless from any liability for additional tax, interest, or penalty based on a different allocation method.

²(5)  In addition to the communications services taxes authorized by subsection (1), a discretionary sales surtax that a county or school board has levied under s. 212.055 is imposed as a local communications services tax under this section, and the rate shall be determined in accordance with s. 202.20(3).

(a)  Except as otherwise provided in this subsection, each such tax rate shall be applied, in addition to the other tax rates applied under this chapter, to communications services subject to tax under s. 202.12 which:

1.  Originate or terminate in this state; and

2.  Are charged to a service address in the county.

(b)  With respect to private communications services, the tax shall be on the sales price of such services provided within the county. In determining the sales price of private communications services subject to tax, the communications service provider shall be entitled to use any method that reasonably allocates the total charges among the state and local taxing jurisdictions in which channel termination points are located. An allocation method is deemed to be reasonable for purposes of this paragraph if the communications service provider regularly used such method for Florida tax purposes prior to December 31, 2000. If a communications service provider uses a reasonable allocation method, such provider shall be held harmless from any liability for additional tax, interest, or penalty based on a different allocation method.

(6)  Notwithstanding any other provision of this section, a tax imposed under this section does not apply to any direct-to-home satellite service.

(7)  Any tax imposed by a municipality, school board, or county under this section also applies to the actual cost of operating a substitute communications system, to be paid in accordance with s. 202.15. This subsection does not apply to the use by any provider of its own communications system to conduct a business of providing communications services or to the use of any communications system operated by a county, a municipality, the state, or any political subdivision of the state.

(8)  Notwithstanding any law to the contrary, a tax imposed under this section shall not exceed $25,000 per calendar year on communications services charges billed to a service address located in a municipality or county imposing a local communications services tax for interstate communications services that originate outside this state and terminate within this state. This subsection applies only to holders of a direct-pay permit issued under s. 202.12(3). A person who does not qualify for a direct-pay permit under s. 202.12(3) does not qualify for a direct-pay permit under this subsection. A refund may not be given for taxes paid before receiving a direct-pay permit. Upon application, the department shall identify the service addresses qualifying for the limitation provided by this subsection on the direct-pay permit issued under s. 202.12(3) and authorize such purchaser to pay the local communications tax on such interstate services directly to the department if the application indicates that the majority of such services used by such person and billed to a service address are for communications originating outside of this state and terminating in this state. The direct-pay permit shall also indicate the counties or municipalities to which it applies. Any dealer of communications services furnishing communications services to the holder of a valid direct-pay permit is relieved of the obligation to collect and remit the tax on such services. Tax payments and returns pursuant to a direct-pay permit shall be monthly. As used in this subsection, "person" means a single legal entity and does not mean a group or combination of affiliated entities or entities controlled by one person or group of persons.

(9)  The revenues raised by any tax imposed under subsection (1) or s. 202.20(1) may be used by a municipality or county for any public purpose, including, but not limited to, pledging such revenues for the repayment of current or future bonded indebtedness. Revenues raised by a tax imposed under subsection (5) shall be used for the same purposes as the underlying discretionary sales surtax imposed by the county or school board under s. 212.055.

(10)  Notwithstanding any provision of law to the contrary, the exemption set forth in s. 202.125(1) shall not apply to a tax imposed by a municipality, school board, or county pursuant to subsection (4) or subsection (5).

(11)  To the extent that a provider of communications services is required to pay to a local taxing jurisdiction a tax, charge, or other fee under any franchise agreement or ordinance with respect to the services or revenues that are also subject to the tax imposed by this section, such provider is entitled to a credit against the amount payable to the state pursuant to this section in the amount of such tax, charge, or fee with respect to such services or revenues. The amount of such credit shall be deducted from the amount that such local taxing jurisdiction is entitled to receive under s. 202.18(3).

History.--ss. 11, 58, ch. 2000-260; ss. 9, 10, 11, 38, ch. 2001-140.

¹Note.--

A.  Section 9, ch. 2001-140, amended s. 202.19 "[e]ffective with respect to communications services reflected on bills dated on or after October 1, 2001."

B.  Section 13, ch. 2001-140, provides:

"(1)  Notwithstanding any provision of chapter 202, Florida Statutes, to the contrary, any municipality or county that has a local communications services tax conversion rate established under section 202.20, Florida Statutes, which is less than the maximum rate established under section 202.19, Florida Statutes, may by resolution or ordinance increase its rate up to the maximum rate established under section 202.19, Florida Statutes, with such increased rate to be effective October 1, 2001. For purposes of this section, during the period beginning on October 1, 2001, and ending September 30, 2002, the maximum rate established under section 202.19, Florida Statutes, shall be deemed to be the sum of such maximum rate plus the difference between the conversion rates set forth in paragraphs (a) and (b) of section 202.20(1), Florida Statutes. The municipality or county shall notify the department of such increased rate by certified mail postmarked on or before July 16, 2001.

"(2)  This section shall take effect upon this act becoming a law."

C.  Section 11, ch. 2001-140, added subsection (12), "[e]ffective with respect to bills issued by communications services providers after August 1, 2002," to read:

(12)  Notwithstanding any other provision of this section, with respect to mobile communications services, the rate of a local communications services tax levied under this section shall be applied to the sales price of all mobile communications services deemed to be provided to a customer by a home service provider pursuant to s. 117(a) of the Mobile Telecommunications Sourcing Act, Pub. L. No. 106-252, if such customer's service address is located within the municipality levying the tax or within the unincorporated area of the county levying the tax, as the case may be.

D.  Section 55, ch. 2000-260, provides that "[t]he taxes imposed by ss. 203.01, 202.12, and 202.19, Florida Statutes, on communications services shall be applied in accordance with chapter 202, Florida Statutes, as created by this act, to communications services reflected on bills dated on or after October 1, 2001."

²Note.--Section 10, ch. 2001-140, amended subsections (4) and (5), effective January 1, 2004, to read:

(4)(a)1.  Except as otherwise provided in this section, the tax imposed by any municipality shall be on all communications services subject to tax under s. 202.12 which:

a.  Originate or terminate in this state; and

b.  Are charged to a service address in the municipality.

2.  With respect to private communications services, the tax shall be on the sales price of such services provided within the municipality, which shall be determined in accordance with the following provisions:

a.  Any charge with respect to a channel termination point located within such municipality;

b.  Any charge for the use of a channel between two channel termination points located in such municipality; and

c.  Where channel termination points are located both within and outside of the municipality:

(I)  If any segment between two such channel termination points is separately billed, 50 percent of such charge; and

(II)  If any segment of the circuit is not separately billed, an amount equal to the total charge for such circuit multiplied by a fraction, the numerator of which is the number of channel termination points within such municipality and the denominator of which is the total number of channel termination points of the circuit.

(b)1.  Except as otherwise provided in this section, the tax imposed by any county under subsection (1) shall be on all communications services subject to tax under s. 202.12 which:

a.  Originate or terminate in this state; and

b.  Are charged to a service address in the unincorporated area of the county.

2.  With respect to private communications services, the tax shall be on the sales price of such services provided within the unincorporated area of the county, which shall be determined in accordance with the following provisions:

a.  Any charge with respect to a channel termination point located within the unincorporated area of such county;

b.  Any charge for the use of a channel between two channel termination points located in the unincorporated area of such county; and

c.  Where channel termination points are located both within and outside of the unincorporated area of such county:

(I)  If any segment between two such channel termination points is separately billed, 50 percent of such charge; and

(II)  If any segment of the circuit is not separately billed, an amount equal to the total charge for such circuit multiplied by a fraction, the numerator of which is the number of channel termination points within the unincorporated area of such county and the denominator of which is the total number of channel termination points of the circuit.

(5)  In addition to the communications services taxes authorized by subsection (1), a discretionary sales surtax that a county or school board has levied under s. 212.055 is imposed as a local communications services tax under this section, and the rate shall be determined in accordance with s. 202.20(3).

(a)  Except as otherwise provided in this subsection, each such tax rate shall be applied, in addition to the other tax rates applied under this chapter, to communications services subject to tax under s. 202.12 which:

1.  Originate or terminate in this state; and

2.  Are charged to a service address in the county.

(b)  With respect to private communications services, the tax shall be on the sales price of such services provided within the county, which shall be determined in accordance with the following provisions:

1.  Any charge with respect to a channel termination point located within such county;

2.  Any charge for the use of a channel between two channel termination points located in such county; and

3.  Where channel termination points are located both within and outside of such county:

a.  If any segment between two such channel termination points is separately billed, 50 percent of such charge; and

b.  If any segment of the circuit is not separately billed, an amount equal to the total charge for such circuit multiplied by a fraction, the numerator of which is the number of channel termination points within such county and the denominator of which is the total number of channel termination points of the circuit.